A court has rejected an attempt by the co-founders of failed financial planning group Storm Financial to throw out the corporate regulator’s pursuit of them.

The Federal Court on Friday dismissed an application by Emmanuel and Julie Cassimatis who were seeking summary dismissal of the Australian Securities and Investments Commission against them.

The decision means ASIC can pursue its civil penalty proceedings alleging the Cassimatis breached their directors’ duties in the $3 billion collapse of Queensland-based Storm.

ASIC is seeking to ban the Cassimatises from the financial services industry and disqualify them from managing companies, as well as the payment of pecuniary penalties.

“Since Storm’s collapse ASIC has been seeking compensation for investors as well as pursuing regulatory action against those companies and individuals intrinsically involved in implementing the Storm model," ASIC deputy chairman Peter Kell said.

The Cassimatis matter will return to court for a directions hearing on July 11.

Separately, ASIC in May said it would appeal the recent court approval of a settlement between Storm Financial clients and Macquarie Bank Limited.

Under the settlement, Macquarie agreed to pay $82.5 million to 1050 Storm clients who took out margin loans with the bank. ASIC has said the settlement was unfair.

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“ASIC’s challenge is not to the amount of the settlement, rather to the fairness of the settlement distribution among all of the class action members who are entitled to participate in it," ASIC said on Friday.

The appeal will be heard by the Full Court of the Federal Court in Brisbane on August 5.

Commonwealth Bank last year agree to provide up to $136 million in compensation for Storm investors who borrowed with the bank.